Accounting Standards for Not-for-Profit Organizations or ASNPO represent the accounting framework established by the Accounting Standards Board (“AcSB”) for not-for-profit organizations.  These standards are located in Part III of the CPA Canada Handbook (“the Handbook”) and became mandatory for not-for-profit organizations for fiscal years beginning on or after January 1, 2012.

A “not-for-profit organization” is an entity, normally without transferable ownership interests, organized and operated exclusively for social, educational, professional, religious, health, charitable or any other not-for-profit purpose.  A not-for-profit organization’s members, contributors and other resource providers do not, in such capacity, receive any financial return directly from the organization.

A not-for-profit organization that is not controlled by a government has a choice of applying either:

  1. the accounting standards for not-for-profit organizations in Part III of the Handbook OR
  2. International Financial Reporting Standards (IFRS) in Part I of the Handbook

If instead a not-for-profit organization is controlled by a government, it falls within the scope of the Public Sector Accounting (PSA) Handbook.  

The Standards in Part III of the Handbook address matters which are unique to not-for-profit organizations such as:

  • Contributions- revenue recognition
  • Contributions receivable
  • Collections held by not-for-profit organizations
  • Reporting controlled and related entities by not-for-profit organizations

A not-for-profit organization that applies Part III of the Handbook also applies the standards for private enterprises in Part II to the extent that the Part II standards address topics not addressed in Part III.  Accounting standards for not-for-profit organizations are issued by the AcSB and, as such, are subject to the due process of the AcSB.

The Not-for-Profit Advisory Committee (the NFP Advisory Committee)’s purpose is to advise the AcSB on maintaining and improving accounting standards for not-for-profit organizations (NFPOs) in Part III of the Handbook and in identifying the need for non-authoritative guidance about the standards. The Committee makes recommendations to the AcSB, but is not authorized to interpret or provide authoritative guidance on accounting standards for NFPOs.

Correction list for hyphenation

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